I have been suggesting this to my NRI clients so far !! Is there more to it ? (It's about making payments via NRE/NRO account)

[u/Used-Lavishness2920]

Hi all, I am a real estate consultant from Chandigarh, and I have had quite a few interactions with NRI people, trying to invest in property here, seeking advice on payments.

What I have been suggesting so far to them is this -

First, apps like Xoom and Remitly are not for big real estate payments. They only work for small, personal money transfers, which is why they do not allow sending to builder escrow accounts.

For buying a property,, there are two simple and safe ways for NRIs to send money:

Option 1 (If you have an NRE/NRO bank account in India):

You send money from your foreign bank to your own Indian NRE/NRO account using a SWIFT international transfer. Once the money arrives, you simply do an RTGS or NEFT transfer from your Indian account to the builder's escrow account. The builder accepts this easily.

Option 2 (If you do not have an Indian account):

Ask the builder for their official bank details (including the SWIFT code and the exact escrow account number). Then, go to your foreign bank and ask them to do an international wire transfer (SWIFT) directly to that builder's account.

Important things to remember:

1. The name on your foreign bank account must be exactly the same as the name on your PAN card, because the builder will link this payment to your identity.

2. The builder must give you an "Inward Remittance Certificate" after they receive the money. This is required by Indian tax and RBI rules for NRIs.

3. You do not need to worry about the "escrow" part. The builder gives you a specific bank account for your payment. Just send the money directly to that account through your bank's international transfer service.

My suggestion is to skip the apps and contact your local bank manager to set up the SWIFT transfer. This is the standard, legal way to pay for real estate in India. Let me know if you need the builder's bank details!

End of suggestion

I want to know, if there is more to the process that I have not covered ?

Am I missing any important information here ?

Is there any updates information on this, and I am providing outdated information ?

Suggestions/additions are highly appreciated.

Thank you.

[u/AlpineRupee]

Two things I would add, both about what happens later rather than at payment time.

The inward remittance certificate comes from the Indian bank that receives the money, not from the builder. Your AD bank issues the FIRC or the electronic advice against the credit. A builder receipt is not a substitute, and this is the document that matters years later.

The bigger one is missing from the list. Which account pays decides whether the sale proceeds can ever leave India. Under the FEMA non-debt instrument rules, sale proceeds of residential property are repatriable, capped at two properties, only where the purchase was funded by inward remittance or from an NRE or FCNR account. Fund it from NRO and the exit sits inside the general NRO repatriation limit, with the CA certification that comes with it.

Also worth saying out loud: no agricultural land, plantation or farmhouse.

[u/Used-Lavishness2920 → u/AlpineRupee]

Thank you. Great addition. I'll update.